Friday 01 November 2019 9:51 am

Volatile market movements boost TP ICAP revenues

CHICAGO – MAY 9: Traders signal offers in the Five-Year Treasury Note Options pit at the Chicago Board of Trade following the announcement from the Federal Reserve meeting that it would maintain short-term interest rates at 5.25 percent May 9, 2007 in Chicago, Illinois. This is the seventh consecutive meeting the Fed has left the rate unchanged. (Photo by Scott Olson/Getty Images)

TP ICAP has reported a jump in third quarter revenue, with the world’s largest inter-dealer broker benefitting from an increase in trading activity over the summer due to global trade tensions and Brexit uncertainty.

The broker held its current guidance for the year, however, warning that geopolitical uncertainties could impact transaction volumes.

Revenue for the three months to the end of September rose 17 per cent compared to the same period the year before, hitting £478m.

“Today’s strong trading update demonstrates that TP ICAP’s trading portfolio is well placed to capitalise on volatile macro market conditions,” said chief executive Nicolas Breteau.

Revenue at four of the company’s four main divisions, including broking, rose year-on-year during the third quarter.

Year-to-date revenue of £1.4bn was six per cent higher on the previous year, TP ICAP said.

The company’s shares rose slightly following the announcement, and were 0.50 per cent up mid-morning.

Peel Hunt analysts said TP ICAP’s decision to hold current guidance “rightly, in our view, recognises the raft of geopolitical uncertainties that prevail in the fourth quarter”.

Analysts said their reported revenue growth assumption for the firm of one per cent is now “too low”, and they anticipate raising this by around two per cent, which would translate into a four to five per cent increase in profits.

TP ICAP is set to report its full-year results in March.